Six months after filing bankruptcy, SunEdison (SUNEQ) is plotting a restructuring plan without liquidating its controlling stake in TerraForm Power (TERP), Bloomberg reports, citing people familiar with the matter. Reference Link

As previously reported, Oppenheimer analyst Colin Rusch downgraded TerraForm Power (TERP) to Perform from Outperform following the company's filing of preliminary financial data as part of an effort to solicit debt holders' waiver of filing deadlines ahead of a potential August 19th cross-default. With its revolving line of credit fully utilized, approximately $3.9B in total debt, and limited capital flexibility, the analyst sees TerraForm Power as "highly" levered and notes the uncertainty around risk to equity cash flows from ongoing negotiations. Further, he sees ongoing risk to O&M arrangements, performance guarantees, and operating and interest expense support from SunEdison (SUNEQ).

Roth Capital analyst Philip Shen noted media reports in China indicating that certain solar feed-in tariff levels may be cut by 23-52%, depending on region and project type, in January 2017. While there appears to be some confusion on which projects may qualify for the 2016 tariff ahead of the 2017 FIT stepdown, Shen tells investors that he sees the reports on the whole as more negative news for the industry. Publicly traded companies in the solar space include Canadian Solar (CSIQ), First Solar (FSLR), JA Solar (JASO), SolarCity (SCTY), SunEdison (SUNEQ), SunPower (SPWR), Trina Solar (TSL) and Yingli Green Energy (YGE).

TERPTerraForm Power

$14.19

0.23 (1.65%)

06/29/16

AVON

06/29/16UPGRADEAVONOutperform

TerraForm Power upgraded to Outperform from Market Perform at Avondale

07/27/16

OPCO

07/27/16DOWNGRADEOPCOPerform

TerraForm Power downgraded to Perform from Outperform at Oppenheimer

07/28/16

AVON

07/28/16DOWNGRADEAVONMarket Perform

TerraForm Power downgraded to Market Perform from Outperform at Avondale

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